Asian equities rise post-FOMC

Asia markets show modest rise

Fed Chair Powell’s post-FOMC remarks saw Wall Street explode higher overnight, led by the Nasdaq. Asian markets are duly following suit, moving higher this morning, but not markedly so, and with nothing like the FOMO rally seen on Wall Street overnight. It seems that Asia is struggling to move China risks, US recession risks, European recession risks, and slowdowns in the region where inflation is playing catchup. That appears to be tempering enthusiasm, and I am sure the rise in oil prices this week isn’t helping either.

Overnight, the post-FOMC rally saw the S&P 500 finish 2.62% higher, with the Nasdaq exploding 4.02% higher, while the Dow Jones gained just 1.37%. There was a definite peak-interest-rate bias to the stock market rally, as evidenced by the Nasdaq outperformance. I think it’s called growth over value. Futures markets are quiet in Asia, S&P 500, Nasdaq, and Dow futures edging just 0.10% lower.

Japan’s Nikkei 255 is just 0.20% higher today, an appreciating yen and oil prices tempering stock market gains. South Korea’s Kospi, by contrast, is 0.90% higher as the won remains stable. China’s Shanghai Composite and CSI 300 have risen by 0.80%, but Hong Kong is just 0.10% higher, and I suspect the HKMA’s 0.75% rate hike to match the Fed’s today is dampening sentiment and raising property concerns.

In regional markets, Singapore is 0.20% higher, Taipei and Kuala Lumpur have rallied by 0.85%, with Jakarta rising by 0.65%. Manila is 1.35% higher, and Bangkok is closed for the King’s birthday today and tomorrow. Australian markets are also higher; the All Ordinaries have risen by 0.75%, with the ASX 200 gaining 0.55%.

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